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Alliant Energy (LNT) to Report Q2 Earnings: A Beat in Store?

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We expect Alliant Energy Corporation LNT to beat earnings estimates when it reports second-quarter 2018 results after the market closes on Aug 2. Last reported quarter, the utility company delivered a positive earnings surprise of 1.96%

Why a Likely Positive Surprise?

Our proven model shows that Alliant Energy is likely to beat estimates because it consists of the right mix of the two key ingredients — a positive Earnings ESP and a solid Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen.

Earnings ESP: Alliant Energy has an Earnings ESP of +1.10%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Alliant Energy carries a Zacks Rank #2, which increases the predictive power of ESP. The combination of a favorable Zacks Rank with a positive ESP makes us reasonably confident about an earnings beat this reporting cycle.

Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Alliant Energy Corporation Price and EPS Surprise

Factors to Consider

Alliant Energy’s earnings are expected to gain from its robust capital expenditure plans and constructive regulatory decisions. The progress, already made by the company in its wind-generation expansion plans and electricity generation from natural gas plans, will aid in meeting its long- term earnings growth objective of 5-7% per year from 2017 EPS base.

Also, the company’s Iowa energy has filed for increase in natural gas distribution rates and service charges with the Iowa Utilities Board. The company’s proposal received an interim rate increase with effect from May 14, 2018, which will drive the top-line positively in the quarter to report.

The Zacks Consensus Estimate for second-quarter earnings is 46 cents, reflecting year-over-year 12.2% growth.

Other Stocks to Consider

Some other stocks worth considering from the Zacks Utility Power industry with the perfect combination of elements to deliver a positive surprise this earnings season are as follows:

Ameren Corporation (AEE - Free Report) is expected to report second-quarter earnings on Aug 3. The company has an Earnings ESP of +1.69% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

CenterPoint Energy, Inc. (CNP - Free Report) is expected to report second-quarter earnings on Aug 3. The company has an Earnings ESP of +0.93% and is a Zacks #2 Ranked stock.

Dominion Energy Inc. (D - Free Report) is expected to report second-quarter earnings on Aug 1. The company has an Earnings ESP of +0.84% and is a #2 Ranked player.

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